COMMISSION SETTLES $91 MILLION SECURITIES FRAUD WITH COMPANIES BASED IN WASHINGTON STATE, ARIZONA, AND NEVIS AND WITH CEO'S ESTRANGED WIFE

On June 6, 2002, the Securities and Exchange Commission settled fraud and registration charges with Znetix, Inc., and Health Maintenance Centers, Inc. ("HMC"), based on Bainbridge Island, Washington; and registration charges against Cascade Pointe of Arizona, LLC, and Cascade Pointe of Nevis, LLC (collectively "Cascade"). Additionally, the Commission settled with relief defendants Bainbridge Island-based Bainbridge Human Performance Centers, PLLC ("BHPC") and Vicki Lawrence, 28, estranged wife of Znetix and HMC CEO Kevin Lawrence. As alleged in the Commission's complaint filed on January 23, 2002, Znetix, HMC and Cascade raised more than $91 million from more than 5,000 investors nationwide with false promises of an imminent, lucrative initial public offering of Znetix.

Znetix and HMC, without admitting or denying the Commission's allegations, consented to the entry of a judgment, entered by the Federal District Court in Seattle, permanently enjoining them from future violations of the antifraud and securities registration provisions of the federal securities laws (Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder). Cascade, without admitting or denying the Commission's findings, consented to the entry of a judgment permanently enjoining it from future violations of Sections 5(a) and 5(c) of the Securities Act. Znetix, HMC, Cascade, BHPC and Vicki Lawrence agreed to disgorge all ill-gotten gains from the stock offerings. Among Vicki Lawrence's ill-gotten gains are three parcels of prime Washington state real estate, two luxury automobiles and one fire truck. Previously, on February 15, 2002, the Court appointed a permanent receiver over Znetix, HMC, Cascade and BHPC. In the event that the permanent receiver collects more than $91 million from the companies, Znetix, HMC, Cascade and BHPC agreed to a penalty not to exceed $91 million.